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BoJ Expected to Hike Rates to 1.25% This Month Amid Yen Concerns
Confirmed
In Short: A poll indicates the Bank of Japan (BoJ) will raise interest rates to 1.25% this month, citing concerns over inflation and the Japanese Yen's weakness.
A poll, confirmed by FXStreet, suggests the Bank of Japan (BoJ) will hike interest rates to 1.25% at its September policy meeting, with further increases expected in the second quarter of 2027. This shift in policy timing is attributed to persistent price pressures and the Japanese Yen's slide to 40-year lows.
The poll, based on responses from 68 economists, found that 82% believed the joint US-Japan Yen-buying intervention and remarks by Treasury Secretary Scott Bessent had lowered political barriers for rate hikes. Economists also noted that the BoJ is likely to raise rates on September 18, with 93% expecting a rate increase this month.
The stronger-than-expected survey results have increased the likelihood that the Federal Reserve will also raise interest rates at its September meeting, according to Cutoday. This move by the BoJ is seen as a response to broader global economic conditions and the need to stabilize the Japanese currency.
What's confirmed
- A poll, confirmed by FXStreet, suggests the Bank of Japan (BoJ) will hike interest rates to 1.25% at its September policy meeting, with further increases expected in the second quarter of 2027. This shift in policy timing is attributed to persistent price pressures and the Japanese Yen's slide to 40-year lows.
- The poll, based on responses from 68 economists, found that 82% believed the joint US-Japan Yen-buying intervention and remarks by Treasury Secretary Scott Bessent had lowered political barriers for rate hikes. Economists also noted that the BoJ is likely to raise rates on September 18, with 93% expecting a rate increase this month.
- The stronger-than-expected survey results have increased the likelihood that the Federal Reserve will also raise interest rates at its September meeting, according to Cutoday. This move by the BoJ is seen as a response to broader global economic conditions and the need to stabilize the Japanese currency.
What's still developing
- Nothing material beyond the confirmed record.